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1. Company Snapshot

1.a. Company Description

CommScope Holding Company, Inc.provides infrastructure solutions for communications and entertainment networks.It operates through four segments: Broadband Networks (Broadband), Outdoor Wireless Networks (OWN), Venue and Campus Networks (VCN), and Home Networks (Home).


The Broadband segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market.The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System, and Comsearch products to the macro and metro cell markets.The VCN segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers, and buildings.


The Home segment provides devices and related software, and management solutions that offer residential connectivity and services to subscribers, such as digital subscriber lines, cable modems, and telephony and data gateways; and set top boxes and software that support cable, satellite, and Internet protocol television content delivery, which include digital video recorders, high definition set top boxes, and hybrid set top devices.It offers its products and services through specialized resellers and distributors, satellite video distributors, and system integrators, as well as directly to customers in the United States, Europe, the Middle East, Africa, the Asia Pacific, the Caribbean, Latin America, and Canada.The company was formerly known as Cedar I Holding Company, Inc.


and changed its name to CommScope Holding Company, Inc.in January 2011.CommScope Holding Company, Inc.


was founded in 1976 and is headquartered in Hickory, North Carolina.

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1.b. Last Insights on COMM

CommScope Holding Company's recent performance is driven by strong demand for AI infrastructure and robust Q3 results. The company's innovative portfolio, including DOCSIS 4.0 and Wi-Fi 7 upgrades, fuels revenue growth. Strategic restructuring, such as the sale of its CCS segment, has reduced debt and refocused the company on high-growth segments. Analysts forecast continued earnings growth through 2027, with COMM trading 20% below fair value. A "Buy" rating is assigned by some analysts, with a price target implying 22% upside.

1.c. Company Highlights

2. CommScope's Q3 Earnings: A Strong Performance

CommScope delivered a robust Q3, with net sales reaching $1.63 billion, a 51% year-over-year increase, and adjusted EBITDA of $402 million, a 97% year-over-year increase. The company's earnings per share (EPS) came in at $0.62, significantly beating estimates of $0.37. The strong performance was driven by the RemainCo business, comprising ANS and RUCKUS, which delivered net sales of $516 million, a 49% increase, and adjusted EBITDA of $91 million, a 95% increase.

Publication Date: Nov -26

📋 Highlights
  • Net Sales & EBITDA Surge: Achieved $1.63B net sales (+51% YoY) and $402M adjusted EBITDA (+97% YoY), driven by strong CCS and RemainCo performance.
  • ANS Growth Acceleration: ANS segment surged 77% YoY in sales, fueled by DOCSIS 4.0 product deployments and record speeds at interop events.
  • CCS Segment Momentum: CCS reported $1.1B net sales (+51% YoY) and $312M adjusted EBITDA (+79% YoY), raising full-year EBITDA guidance to $1.3B–$1.35B.
  • Wi-Fi 7 & RUCKUS Expansion: RUCKUS revenue rose 15% YoY, driven by Wi-Fi 7 adoption, outdoor T670 AP deployments, and U.S. government certifications.
  • Liquidity & Shareholder Returns: Ended with $1.28B liquidity ($705M cash) and plans a special dividend within 60–90 days, alongside a 2026 CCS transaction closing.

Segment Performance

The CCS segment reported net sales of $1.1 billion, a 51% year-over-year increase, and adjusted EBITDA of $312 million, a 79% increase. The ANS business saw a significant increase in net sales, driven by the deployment of new DOCSIS 4.0 amplifier and node products, while RUCKUS revenue was up 15% year-over-year, driven by strong demand for Wi-Fi 7 products and subscription services.

Guidance and Outlook

The company is raising its full-year adjusted EBITDA guidance to $1.30 billion to $1.35 billion and its 2025 RemainCo adjusted EBITDA guidance to $350 million to $375 million. CommScope expects to distribute excess cash to shareholders as a special dividend within 60 to 90 days of the transaction closing. The company's strong performance and guidance are expected to drive growth and value creation.

Valuation and Metrics

With a P/E Ratio of 4.49 and an EV/EBITDA of 9.43, CommScope's valuation appears reasonable, considering its strong earnings growth. The company's ROIC of 35.19% indicates a high return on invested capital. However, the Net Debt / EBITDA ratio of 5.74 suggests that the company still has significant debt. Analysts estimate next year's revenue growth at -14.0%, which may impact the company's valuation.

Competitive Positioning

CommScope faces competition from various players in the ANS and RUCKUS spaces, including Telista, Vecima, Harmonics, ATX, Cisco, HP, Juniper, Extreme, and Arista. However, the company is one of the few that supply into the DOCSIS space with all the necessary products, positioning it well for growth. As Chuck Treadway mentioned, the RemainCo businesses have exceeded projections, demonstrating their strong positioning.

3. NewsRoom

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3 Well-Positioned AI Stocks From Steven Cress

Dec -03

Source: seekingalpha.com

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CommScope's FAST Track Network Showcase and Training Center Opens in North Carolina

Dec -03

Source: businesswire.com

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Ensign Peak Advisors Inc Takes Position in CommScope Holding Company, Inc. $COMM

Dec -02

Source: defenseworld.net

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CommScope Soars 251.5% in Six Months: How to Play the Stock?

Dec -01

Source:

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First Look: Airbus drops, Crypto slides, Cyber Monday

Dec -01

Source: gurufocus.com

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3 Best AI Stocks For The 2025 Santa Rally

Nov -30

Source: seekingalpha.com

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Traders Purchase Large Volume of CommScope Call Options (NASDAQ:COMM)

Nov -25

Source: defenseworld.net

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Steven Cress' 6 Picks: 3 Dividend Income, 3 AI Growth Stocks

Nov -23

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.85%)

6. Segments

Connectivity and Cable Solutions

Expected Growth: 3.8%

CommScope's Connectivity and Cable Solutions segment growth is driven by increasing demand for high-speed data and video services, proliferation of 5G networks, and rising need for fiber optic infrastructure. Additionally, growing adoption of IoT devices and smart cities initiatives are fueling growth. The company's strong portfolio of fiber optic and copper connectivity solutions, as well as its global presence, are also contributing to its growth.

Networking Intelligent Cellular and Security Solutions

Expected Growth: 3.9%

CommScope's 3.9% growth in Networking Intelligent Cellular and Security Solutions is driven by increasing demand for 5G network infrastructure, growing need for secure and reliable connectivity, and rising adoption of IoT devices. Additionally, the company's strategic acquisitions and investments in R&D have enhanced its product portfolio and expanded its market reach.

Access Network Solutions

Expected Growth: 3.7%

CommScope's Access Network Solutions segment growth of 3.7% is driven by increasing demand for high-speed broadband and 5G network infrastructure, as well as growing adoption of fiber-to-the-home (FTTH) and hybrid fiber-coaxial (HFC) networks. Additionally, the segment benefits from CommScope's strong relationships with major telecom operators and its ability to provide end-to-end network solutions.

Outdoor Wireless Networks

Expected Growth: 4.1%

CommScope's Outdoor Wireless Networks segment growth of 4.1% is driven by increasing demand for 5G network infrastructure, rising adoption of IoT devices, and growing need for high-speed data connectivity in public venues and stadiums. Additionally, the trend towards network densification and the requirement for seamless wireless coverage in urban areas are also contributing to the segment's growth.

7. Detailed Products

Network Infrastructure

CommScope's network infrastructure products provide a comprehensive portfolio of copper and fiber connectivity solutions, including structured cabling systems, fiber optic connectivity, and data center solutions.

Outdoor Wireless Networks

CommScope's outdoor wireless network solutions provide a range of products and systems for macro cell sites, small cells, and DAS (Distributed Antenna Systems) deployments.

Indoor Wireless Networks

CommScope's indoor wireless network solutions provide a range of products and systems for in-building wireless, including DAS, small cells, and Wi-Fi solutions.

Fiber Optic Connectivity

CommScope's fiber optic connectivity solutions provide a range of products and systems for fiber-to-the-home (FTTH), fiber-to-the-premises (FTTP), and data center applications.

Data Center Solutions

CommScope's data center solutions provide a range of products and systems for data center infrastructure, including cabinets, racks, and cable management systems.

Broadband Networks

CommScope's broadband network solutions provide a range of products and systems for hybrid fiber-coaxial (HFC) networks, fiber-to-the-home (FTTH), and fiber-to-the-premises (FTTP) networks.

8. CommScope Holding Company, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CommScope Holding Company, Inc. faces moderate threat from substitutes due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

CommScope Holding Company, Inc. has a high bargaining power of customers due to the presence of large and established customers in the industry.

Bargaining Power Of Suppliers

CommScope Holding Company, Inc. has a low bargaining power of suppliers due to the presence of multiple suppliers in the market.

Threat Of New Entrants

CommScope Holding Company, Inc. faces a moderate threat of new entrants due to the presence of barriers to entry and the need for significant investment in the industry.

Intensity Of Rivalry

CommScope Holding Company, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 124.06%
Debt Cost 6.03%
Equity Weight -24.06%
Equity Cost 14.09%
WACC 4.09%
Leverage -515.59%

11. Quality Control: CommScope Holding Company, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CommScope

A-Score: 4.4/10

Value: 7.7

Growth: 3.0

Quality: 5.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Harmonic

A-Score: 4.3/10

Value: 5.1

Growth: 6.0

Quality: 7.4

Yield: 0.0

Momentum: 2.0

Volatility: 5.3

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Viasat

A-Score: 3.5/10

Value: 6.0

Growth: 1.9

Quality: 1.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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Comtech

A-Score: 2.9/10

Value: 9.8

Growth: 1.2

Quality: 3.5

Yield: 1.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

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Cambium Networks

A-Score: 2.3/10

Value: 9.5

Growth: 0.8

Quality: 2.5

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

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Stock-Card
DZS

A-Score: 2.2/10

Value: 10.0

Growth: 0.1

Quality: 3.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.04$

Current Price

19.04$

Potential

-0.00%

Expected Cash-Flows